UN Convention Against Corruption
This commitment requires Sri Lanka to ensure compliance with UNCAC. Compliance status of the mandatory provisions are as follows:
Article 12 - Private sector
No compliance update present
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Article 12.1 Take measures to prevent corruption involving the private sector, enhance accounting and auditing standards in the private sector and, where appropriate, provide effective, proportionate and dissuasive civil, administrative or criminal penalties for failure to comply with such measures.
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Commission to Investigate Allegations of Bribery or Corruption (CIABOC)
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• The following laws contain provisions relating to record keeping, preparation of financial statements, auditing and monitoring of the activities of the private sector, preventing corruption.
o The Sri Lanka Accounting and Auditing Standards Act No. 15 of 1995.
o The Companies Act No. 07 of 2007
o Securities and Exchange Commission Act No. 36 of 1987
o Monetary Law Act No. 58 of 1949
o Banking Act No. 30 of 1988
o Insurance Act No. 25 of 1962
o Finance Companies Act No. 78 of 1988
o Finance Leasing Act No. 56 of 20• Codes of corporate governance have been adopted for licensed banks and finance companies.
• No special whistle-blowing mechanism exists for the private sector.
• The National Action Plan that is being developed is to contain provisions on improving accountability private sector organizations.
National Action Plan for combating Bribery and Corruption 2019-2023 recognizes private sector bribery and intends to provide measures to integrate prevention measures in the private sector such as reviewing current codes governing ethical conduct, regulatory audits to assess adherence to code and introducing a code for integrity and countering bribery.
Further, amendments to the Bribery Act No. 11 of 1954, are proposed to outlaw the private sector bribery.
Link to National Action Plan for Combating Bribery and Corruption 2019 – 2023
- English https://www.ciaboc.gov.lk/images/nap/NAP-Book-ENG.pdf
- Sinhala https://sinhala.ciaboc.gov.lk/images/nap/NAP-Book-SIN.pdf
- Tamil https://tamil.ciaboc.gov.lk/images/nap/NAP-Book-TAM.pdf
Link to Sri Lanka Accounting and Auditing Standards Act No. 15 of 1995 http://www.slaasc.lk/pdf/01.pdf
Link to Companies Act No. 07 of 2007 http://www.drc.gov.lk/wp-content/uploads/2018/04/Act-7-of-2007-English.pdf
Link to Securities and Exchange Commission Act No. 36 of 1987 http://www.sec.gov.lk/wp-content/uploads/SEC-Act-Revised-Edition-2009.pdf
Link to Monetary Law Act No. 58 of 1949 https://www.cbsl.gov.lk/sites/default/files/cbslweb_documents/laws/acts/en/monetary_law_act.pdf
Link to Banking Act No. 30 of 1988 http://www.dfe.lk/web/images/downloads/acts/bankingAct.pdf
to Insurance Act No. 25 of 1962 http://www.commonlii.org/lk/legis/num_act/coia25o1962271 /
Link to Finance Companies Act No. 78 of 1988 https://www.imolin.org/doc/amlid/Sri_Lanka_finance_companies_act_no_78of1988.pdf
Link to Finance Leasing Act No. 56 of 2000 https://www.cbsl.gov.lk/sites/default/files/cbslweb_documents/laws/acts/en/fin_leasing_7th_rev.pdf
Underway
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Article 12.3 In order to prevent corruption, take measures regarding the maintenance of books and records, financial statement disclosures and accounting and auditing standards, to prohibit the following acts carried out:
(a) The establishment of off-the-books accounts;
(b) The making of off-the-books or inadequately identified transactions;
(c) The recording of non-existent expenditure;
(d) The entry of liabilities with incorrect identification of their objects;
(e) The use of false documents; and
(f) The intentional destruction of bookkeeping documents earlier than foreseen by the law.
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Commission to Investigate Allegations of Bribery or Corruption (CIABOC), Financial Intelligence Unit (FIU)
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• As per the Companies Act No. 7 of 2007 “off-the book accounts” are illegal. True and accurate reporting and record keeping are required and violations will follow sanctions.
• According to the Companies Act, all companies formed thereunder are obliged to keep correct accounting records (section 148).
• Provisions relating to record keeping, preparation of financial statements, auditing and monitoring of the activities of the private sector are detailed in Accounting and Auditing Standards Act, Companies Act, Securities and Exchange Commission Act, Monetary Law Act, Banking Act, Insurance Act and Finance Companies Act.
Link to Companies Act No. 7 of 2007 http://www.drc.gov.lk/wp-content/uploads/2018/04/Act-7-of-2007-English.pdf
Link to Accounting and Auditing Standards Act http://www.slaasc.lk/pdf/01.pdf
Link to Securities and Exchange Commission Act http://www.sec.gov.lk/wp-content/uploads/SEC-Act-Revised-Edition-2009.pdf
Link to Monetary Law Act https://www.cbsl.gov.lk/sites/default/files/cbslweb_documents/laws/acts/en/monetary_law_act.pdf
Link to Banking Act http://www.dfe.lk/web/images/downloads/acts/bankingAct.pdf
Link to Insurance Act http://www.commonlii.org/lk/legis/num_act/coia25o1962271/
Link to Finance Companies Act https://www.imolin.org/doc/amlid/Sri_Lanka_finance_companies_act_no_78of1988.pdf
Completed
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Article 12.4 Disallow tax deductibility of expenses that constitute bribes and other expenses incurred in furtherance of corrupt conduct.
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Commission to Investigate Allegations of Bribery or Corruption (CIABOC)
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- Bribes are not tax deductible and it is prohibited under sections 10–19 of the Inland Revenue Act 2017.
Link to Inland Revenue Act http://www.ird.gov.lk/en/publications/SitePages/acts.aspx
Completed
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Underway 
Incomplete